We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Carpenter Technology (CRS) Q3 Earnings Top Estimates, Surge Y/Y
Read MoreHide Full Article
Carpenter Technology Corporation (CRS - Free Report) reported earnings of $1.19 per share for third-quarter fiscal 2024, surpassing the Zacks Consensus Estimate of 94 cents. The bottom line marked a solid improvement of 213% from the adjusted earnings of 38 cents per share in the year-ago quarter. Despite a decline in revenues due to lower volumes, CRS achieved this earnings improvement courtesy of improved productivity, product mix optimization and pricing actions.
Including special items, earnings were 12 cents per share compared with 38 cents in the third quarter of fiscal 2023., CRS recorded a noncash pension settlement charge of $51.9 million as a result of executing de-risking actions to annuitize certain pension plan obligations. It also recorded a noncash goodwill impairment charge of $14.1 million related to the Latrobe Distribution reporting unit in the Performance Engineered Products segment.
Net sales dipped 0.8% year over year to $685 million as the company witnessed a 12% year-over-year decline in shipment volume. The figure missed the Zacks Consensus Estimate of $691 million.
Carpenter Technology Corporation Price, Consensus and EPS Surprise
By end-markets, CRS witnessed a year-over-year revenue increase of 30.5% in Aerospace and Defense and 35.4% in Medical. Meanwhile, revenues in Transportation end-markets were down 22.6%, Distribution dipped 21%, and Industrial and Consumer declined 19.4%. Revenues in the Energy end-markets were down 2.8%.
Operational Results
The cost of goods sold declined 9.8% year over year to $538 million. The gross profit surged 57.2% year over year to $147 million.
The adjusted operating income was a record $90 million, a solid 129% jump from the prior-year quarter’s $39.3 million. This was attributed to improved productivity, product mix optimization and pricing actions.
Segment Performances
The Specialty Alloys Operations segment reported sales of $608.5 million compared with the prior-year quarter’s $603 million. We predicted the segment sales at $606 million. The segment sold 50,846 pounds compared with the year-ago quarter’s 56,516 pounds. The reported figure missed our estimate of 56,579 pounds.
The segment posted an operating profit of $103.5 million compared with the prior-year quarter’s $49 million. Our projection for the same was $88 million.
The Performance Engineered Products’ net sales fell 11% year over year to $102 million. The reported figure missed our estimate of $106 million. The segment sold 2,618 pounds compared with the year-ago quarter’s 3,232 pounds. The figure was lower than our projection of 2,963 pounds.
Segmental operating profit was $9.2 million compared with the prior-year quarter’s $10.2 million. The metric was in line with our estimate.
Financials
Carpenter Technology ended third-quarter fiscal 2024 with cash and cash equivalents of $53.5 million compared with $44.5 million at the end of fiscal 2023. The long-term debt was around $694 million at the end of the quarter compared with $693 as of the end of fiscal 2023.
Cash flow from operating activities was $83.4 million, a substantial improvement from $4 million in the prior-year quarter, reflecting the improvement in earnings and less cash used for working capital compared with the prior-year quarter.
Guidance for Q4 & FY24
Carpenter Technology expects operating income to range between $110 million and $115 million in the fourth quarter of fiscal 2024. For fiscal 2024, CRS projects adjusted operating profit in the range of $339-$344 million. If achieved, the year would mark the company’s most profitable year on record.
The company expects to generate more than $100 million in adjusted free cash flow in the fourth quarter of fiscal 2024.
Price Performance
Shares of the company have gained 82.1% in the past year compared with the industry’s 44.7% growth.
Other top-ranked stocks in the Basic Materials space are Gold Fields Limited (GFI - Free Report) , L.B. Foster Company (FSTR - Free Report) and American Vanguard Corporation (AVD - Free Report) . While GFI sports a Zacks Rank of 1, FSTR and AVD carry a Zacks Rank of 2.
The Zacks Consensus Estimate for GFI’s first-quarter earnings is pegged at 22 cents per share. The consensus estimate for GFI’s earnings has been stable in the past 60 days.
L.B. Foster is slated to report first-quarter results on May 7. The consensus estimate for FSTR’s earnings is pegged at a loss of 16 cents per share. The company’s shares have rallied 116.1% in the past year.
AVD is expected to report first-quarter results on May 14. The consensus estimate for AVD’s earnings is pegged at 8 cents per share, indicating a year-over-year rise of 14.3%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Carpenter Technology (CRS) Q3 Earnings Top Estimates, Surge Y/Y
Carpenter Technology Corporation (CRS - Free Report) reported earnings of $1.19 per share for third-quarter fiscal 2024, surpassing the Zacks Consensus Estimate of 94 cents. The bottom line marked a solid improvement of 213% from the adjusted earnings of 38 cents per share in the year-ago quarter. Despite a decline in revenues due to lower volumes, CRS achieved this earnings improvement courtesy of improved productivity, product mix optimization and pricing actions.
Including special items, earnings were 12 cents per share compared with 38 cents in the third quarter of fiscal 2023., CRS recorded a noncash pension settlement charge of $51.9 million as a result of executing de-risking actions to annuitize certain pension plan obligations. It also recorded a noncash goodwill impairment charge of $14.1 million related to the Latrobe Distribution reporting unit in the Performance Engineered Products segment.
Net sales dipped 0.8% year over year to $685 million as the company witnessed a 12% year-over-year decline in shipment volume. The figure missed the Zacks Consensus Estimate of $691 million.
Carpenter Technology Corporation Price, Consensus and EPS Surprise
Carpenter Technology Corporation price-consensus-eps-surprise-chart | Carpenter Technology Corporation Quote
By end-markets, CRS witnessed a year-over-year revenue increase of 30.5% in Aerospace and Defense and 35.4% in Medical. Meanwhile, revenues in Transportation end-markets were down 22.6%, Distribution dipped 21%, and Industrial and Consumer declined 19.4%. Revenues in the Energy end-markets were down 2.8%.
Operational Results
The cost of goods sold declined 9.8% year over year to $538 million. The gross profit surged 57.2% year over year to $147 million.
The adjusted operating income was a record $90 million, a solid 129% jump from the prior-year quarter’s $39.3 million. This was attributed to improved productivity, product mix optimization and pricing actions.
Segment Performances
The Specialty Alloys Operations segment reported sales of $608.5 million compared with the prior-year quarter’s $603 million. We predicted the segment sales at $606 million. The segment sold 50,846 pounds compared with the year-ago quarter’s 56,516 pounds. The reported figure missed our estimate of 56,579 pounds.
The segment posted an operating profit of $103.5 million compared with the prior-year quarter’s $49 million. Our projection for the same was $88 million.
The Performance Engineered Products’ net sales fell 11% year over year to $102 million. The reported figure missed our estimate of $106 million. The segment sold 2,618 pounds compared with the year-ago quarter’s 3,232 pounds. The figure was lower than our projection of 2,963 pounds.
Segmental operating profit was $9.2 million compared with the prior-year quarter’s $10.2 million. The metric was in line with our estimate.
Financials
Carpenter Technology ended third-quarter fiscal 2024 with cash and cash equivalents of $53.5 million compared with $44.5 million at the end of fiscal 2023. The long-term debt was around $694 million at the end of the quarter compared with $693 as of the end of fiscal 2023.
Cash flow from operating activities was $83.4 million, a substantial improvement from $4 million in the prior-year quarter, reflecting the improvement in earnings and less cash used for working capital compared with the prior-year quarter.
Guidance for Q4 & FY24
Carpenter Technology expects operating income to range between $110 million and $115 million in the fourth quarter of fiscal 2024. For fiscal 2024, CRS projects adjusted operating profit in the range of $339-$344 million. If achieved, the year would mark the company’s most profitable year on record.
The company expects to generate more than $100 million in adjusted free cash flow in the fourth quarter of fiscal 2024.
Price Performance
Shares of the company have gained 82.1% in the past year compared with the industry’s 44.7% growth.
Image Source: Zacks Investment Research
Zacks Rank and Other Stocks to Consider
Carpenter Technology currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other top-ranked stocks in the Basic Materials space are Gold Fields Limited (GFI - Free Report) , L.B. Foster Company (FSTR - Free Report) and American Vanguard Corporation (AVD - Free Report) . While GFI sports a Zacks Rank of 1, FSTR and AVD carry a Zacks Rank of 2.
The Zacks Consensus Estimate for GFI’s first-quarter earnings is pegged at 22 cents per share. The consensus estimate for GFI’s earnings has been stable in the past 60 days.
L.B. Foster is slated to report first-quarter results on May 7. The consensus estimate for FSTR’s earnings is pegged at a loss of 16 cents per share. The company’s shares have rallied 116.1% in the past year.
AVD is expected to report first-quarter results on May 14. The consensus estimate for AVD’s earnings is pegged at 8 cents per share, indicating a year-over-year rise of 14.3%.